Applications for New Home Purchases Drops in August: MBA

Commercial

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Mortgage applications to buy a new home decreased 9% in August compared to the prior month, according to data from the Mortgage Bankers Association.

New single-family home sales were running at a seasonally adjusted annual rate of 424,000 units in August, the Washington-based trade group’s builder application survey determined.

The monthly figure is down 2.1% from the July pace of 433,000 units. The MBA said its data did not make adjustments for typical seasonal patterns.

The average loan size for a new home rose 1% month-over-month, to $300,453, the MBA said.

Conventional loans composed the highest volume of mortgage applications at 68.9%. Federal Housing Administration loans accounted for 15.7%, Veterans Affairs loans were 14.3% and Department of Agriculture loans made up 1% of the total amount.

The MBA’s estimates on new home sales is derived using mortgage application information from the builder application survey, which tracks application volume from home builders nationwide.

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